Tether Gold Price Analysis: Why XAUt Could Hit $5000 Soon

Highlights:

• Tether Gold is trending higher, closing higher every day
• Strength driven by rising uncertainty that is pushing capital away from risk-on assets
• Gold could rally to prices as high as $10k if uncertainty remains strong

Tokenized Gold is rallying intraday, reflecting the underlying strength of Gold. One of them is Tether Gold (XAUt), which is up by 0.82% to trade at $4700. However, Tether Gold trading volumes have dropped intraday. They have fallen by 21.97% to stand at $105.64 million. Such a drop in price while it is rising indicates that the average holder of Tether Gold is not keen to sell, despite the high cost. They expect the price to keep going higher in the foreseeable future. 

However, it also means that new investors may be holding back, waiting for a correction and consolidation before taking new positions. Overall, the sentiment is bullish for Tether Gold, and the price could be headed much higher, with $5000 now a key target. A couple of factors support such a rally in Tether Gold. 

Trump Tariff Threat to Europe Pushing Gold Higher

One of them is the fact that the US President Donald Trump and his social media posts on global issues. In the past, most decisions, such as trade and war, were made by structured institutions within the US political system.

However, since Trump took over, many decisions have come from him through executive orders and social media posts, and markets have increasingly been on edge. His latest tweets are about possible tariffs on multiple EU countries, in an attempt to force Denmark to give up Greenland.

President Trump announced tariffs of up to 10% on the said European countries by February 1. This has rattled the markets because the said countries are supposed to be US allies both on trade and politics. This move against allies has seen investors flee risk-on assets such as stocks and cryptocurrencies and move into Gold, a proven risk-off asset.

Trump posted that starting Feb 1, major EU countries (Denmark, Germany, France, UK, Netherlands, Finland, etc.) face a 10% US tariff, rising to 25% on June 1, unless a Greenland deal is reached.

Markets didn’t like it risky assets sold off fast. pic.twitter.com/L2bWRvyIxW

— CRYPTOMOJO_TA (@CRYPTOMOJO_TA) January 20, 2026

Constant Risk of War Driving Capital Into Gold

Besides the US President’s move against allies and foes alike on trade, war is a constant threat in the world today. The US recently made a unilateral move to attack Venezuela and capture the country’s president. This move has been criticized by major bodies such as the UN and also by close US allies. All these moves are giving investors the impression that the US is increasingly getting isolated from the rest of the world. This, markets fear, could hurt US companies, as most rely on a global consumer base.

BREAKING: Gold reaches new all-time high of $4,650

Gold futures just opened and we’re seeing a massive candle pushing Gold toward a new all-time high!

Capital is fleeing to safety as global tensions escalate. pic.twitter.com/Ed9sMlUap7

— sarah milady (@saracrypto_eth) January 18, 2026

Such fears, coming at a time when US markets are trading at record levels, have created the impression that they are overvalued and could be headed for a correction. The result is that investors are increasingly taking precaution by buying risk-off assets such as Tether Gold. As this risk-off sentiment takes root, especially as the US president doubles down on isolationism, Gold could reach $10,000 during his presidency. 

Central Banks Pushing Gold Demand Higher

Central banks, especially in countries like China, are also increasingly adding to the bullish momentum around Gold. This is mainly driven by geopolitics, as China increasingly seeks to protect itself against any adverse action by the US. This demand from major central banks, combined with geopolitical factors, could see Gold hit $5000 soon and $10,000 in the foreseeable future.

Ray Dalio said: "Countries are letting their reserves or assets go down and acquiring gold."

Central banks bought more gold in 2025 than any year in history.

They're not telling the public why, but their actions speak volumes.

Here's what they see coming: pic.twitter.com/Y3Rjrdqn3w

— Felix Prehn 🐶 (@felixprehn) November 1, 2025

Technical Analysis – Tether Gold Price Making New All-Time Highs

Tether Gold is currently trading higher after breaking $4700. The rally is a continuation of the strong momentum Gold has shown this year. If this momentum continues, Tether Gold is likely headed to $5000 in the short term.

However, if there is a minor intraday correction, the key level to watch would be the $4586.16 support level. However, a rally to $5000 is more likely due to a confluence of positive factors around Gold, especially regarding geopolitics.